Update for Friday, January 1, 2010

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INTERESTED IN MORE “HOW TO” INVESTMENT INFO PLUS MY NOT ALWAYS POLITICALLY CORRECT RUMINATIONS ABOUT THE MARKET?

I have set up a blog to share my market analysis & insights -- and to sometimes blow off steam when something stupid (or brilliant) catches my eye. You can post comments and voice your opinion uncensored. Take a look:

http://thewallstreetbully.blogspot.com

This week's hot topics are:

1. "Hedge Clarification—For One Reader"

2. "Unlucky Seven"

3. "More On Dividends And Sell Stops"

4. "Distribution Time"

5. "Sunday Musings: Great Expectations"

6. "Be A Control Freak"

This is another free service, so spread the word to your friends.

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THE LINK TO OUR CURRENT MUTUAL FUND/ETF STATSHEET is:

http://www.successful-investment.com/StatSheet/SS123109.htm

This StatSheet is updated through Thursday, December 31, 2009.
The next scheduled update will be Thursday, January 7, 2010.

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Friday, January 1, 2010

SLIPPING AND SLIDING INTO 2010

As was to be expected, the markets meandered around the unchanged line for most of the week before succumbing to last hour selling to close the year on a sour note. The losses for the major indexes amounted to less than 1% for the week, which is fairly minor compared to how the year turned out:

Dow +18.8%
S&P 500: +23.5%
Nasdaq: +43.9%

Of course, these gains came on the heels of one of most devastating losses in history, when the S&P 500 lost in excess of 38% during 2008, so a lot of making up still needs to be done. As I posted a few days ago, this decade was the worst ever for the S&P 500, as the index lost 24.1%, which affected all of those investors who swallowed the buy-and-hold mantra hook, line and sinker.

Our Trend Tracking Indexes (TTIs) closed out 2009 above their long-term trend lines by the following percentages:

Domestic TTI: +5.50%
International TTI: +8.76%
Hedge TTI: +0.07%

The Labor Department reported today that initial jobless claims fell to the lowest level since July 2008, which in itself is a positive, but it also suggests that the recovery is gaining strength, at least momentarily. This caused interest rates to tick up and, as the dollar gained, the markets fell apart.

Next week, with Wall Street traders returning to their offices well rested, we will get some indication if this rally is slowly running out of steam or if there is more upside potential left.

As always, my mantra for 2010 will be the same as last year, in that I will watching sell stops very closely. This current rally has come a long way and, without a meaningful correction over the past few months, odds are that one will occur sooner or later. We will be prepared to act accordingly.

Have a Happy New Year!

Ulli...

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Back issues of the Fund Tracker are available on the web at:

http://www.successful-investment.com/newsletter-archive.php

Do you have a question regarding your mutual fund investments?

I will always give you my unbiased and honest opinion. How can you be sure?

First, this is a free newsletter and it will not affect my renewal rates.

Second, I am not running for office and do not have to hide my thoughts in evasive language designed to obscure what I really mean.

So, feel free to send your questions to: ulli@successful-investment.com

All Reader Q & A's for this Buy Cycle are now listed at our web site! Check it out at:

http://www.successful-investment.com/q&a.php

WOULD YOU LIKE TO HAVE YOUR INVESTMENTS PROFESSIONALLY MANAGED?

Do you have the time to follow our investment plans yourself? If you are a busy professional who would like to have his portfolio managed using our methodology, please contact me directly or get more details at:

http://www.successful-investment.com/money_management.htm

We are located at:

18685 A-Main Street, #606
Huntington Beach, CA 92648

Until next week.

Ulli...

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Ulli G. Niemann
Registered Investment Advisor
714.841.5804 Toll free: 866.580.6764
http://www.successful-investment.com
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